July 12, 2017

Commercial Real Estate

Albuquerque Small Business Commercial Real Estate
 What Makes More Sense-to Lease or Own Your Space? 
This is a question I am posed with frequently. The simple answer is this: when the rent and associated expenses are higher than what you would pay buying a similar space, it’s time to consider buying. Some important factors to consider:
  • Interest rates have never been lower. Buyers are seeing rates under 5 percent. They will likely never be lower;
  • It is a buyer’s market. There is more space available than the demand, which means there are great deals to be had;
  • The cost to purchase an existing building is well below the cost to replace and/or build;
  • Owning means you have an asset that you can sell or utilize as an income stream at retirement;
  • If you plan to stay in the same location for 7 or more years, then buying is generally less expensive than leasing.
  • There is more available rental space on the market than ever before. That means if you want to rent, there are great deals to be had in the lease market.
  • Buying will cost more upfront then leasing. Some things to consider: can you afford to tie up the money needed for the down payment and closing costs? Will you outgrow the space and need to move in a few years? Can you deal with the added hassle of maintaining a property?
Want to explore your options? Let me do an analysis for you on what you’re currently paying and what it would cost for you to own. Contact me for your free analysis.